MAINS Current Affairs includes Challenges to Trade Multilateralism amid WTO Crisis & Transforming India’s Nuclear Power Landscape

Economy

1. Challenges to Trade Multilateralism amid WTO Crisis

Context

• The World Trade Organization’s Fourteenth Ministerial Conference (MC14), held in Yaoundé, highlighted growing divisions and institutional weaknesses within the WTO.
  • Trade multilateralism is facing its most serious challenge since the post-Second World War era.

Breakdown of Key Moratoriums

• End of E-Commerce Moratorium:Since 1998, WTO members had agreed not to impose customs duties on digital trade.
  • MC14 failed to extend this moratorium, which lapsed on March 31, 2026.
  • Countries are now free to impose tariffs on electronic transmissions.
• TRIPS Non-Violation Moratorium:It led to the expiry of the safeguard against non-violation complaints under the TRIPS Agreement.
  • The safeguard since 1995has protected the policy space of developing countries. Without it, even WTO-compliant measures, such as compulsory licensing, can be challenged by developed countries.
  • For India, this increases the risk of disputes over Section 3(d)of the Indian Patents Act, 1970, which restricts patents for already-known drugs unless the new claims are superior in terms of efficacy. It curbs the evergreening of patents.
• Deadlock on Plurilateral Agreements: The proposed Investment Facilitation for Development (IFD) agreement failed to be incorporated into the WTO framework.
  • India opposed its inclusion due to the absence of clear legal provisions for integrating plurilateral agreements.

Broader Challenges Faced by WTO

• Erosion of Foundational Principles: Key principles such as Most-Favoured Nation (MFN) treatmentand Special and Differential Treatment (SDT) are increasingly being questioned.
  • Actions by countries like the United States reflect a shift towards unilateralism and selective rule adherence.
• Crisis in Dispute Settlement Mechanism: The WTO’s dispute settlement system, particularly its appellate body, remains non-functional.
  • MC14 failed to provide any roadmap for restoring this crucial mechanism.
  • Without a credible dispute resolution system, enforcement of trade rules becomes ineffective.
• Fragmentation of Global Trade Rules: The failure of WTO negotiations is pushing countries towards alternative arrangements such as;
  • Bilateral agreements
  • Regional trade blocs
  • Plurilateral agreements outside WTO.

Way Ahead

• The future of global trade governance depends on the WTO’s ability to adapt without compromising its foundational principles.
• A balanced approach combining reform, inclusivity, and strong political commitment is essential to restore faith in multilateralism. 

Science & Technology

2. Transforming India’s Nuclear Power Landscape

Context: India, set to expand nuclear power capacity to 100 GW by 2047, as highlighted in the Union Budget 2025–26, needs supportive rules and regulations aligned with the transformative spirit underlying the SHANTI Act, 2025.

Why Nuclear Energy Matters for India?

• Rising Energy Demand: India’s per capita electricity is around 1,418 kWh
  • Around 7,097 kWh in China and 12,701 kWh in the USA indicates huge growth potential.
• Energy Transition Challenge: Installed capacity in 2025 is around 476 GW in which around 50% non-fossil fuel.
  • But generation share: Thermal (~75%); Renewables (~22%); and Nuclear (~3%)

India’s Nuclear Power Landscape

• Current Status:
  • Installed capacity: About 7–8.8 GW; Share in total electricity generation is about 3%
  • Operated mainly by: Nuclear Power Corporation of India Ltd. (NPCIL)
  • Regulated by: Atomic Energy Regulatory Board (AERB)
• Institutional Framework:
  • Department of Atomic Energy (DAE)for policy & strategic control;
  • Nuclear Power Corporation of India Ltd. (NPCIL) for construction & operation of nuclear plants;
  • Atomic Energy Regulatory Board (AERB)for safety regulation (now moving toward statutory autonomy under reforms)
• Reactor Types in India:
  • Indigenous Pressurised Heavy Water Reactors (PHWR)
  • Boiling Water Reactors (BWR), oldest in Tarapur
  • Voda-Vodyanoi Energetichesky Reaktor (VVER)ie Russian PWR in Kudankulam
• Key Features of India’s Nuclear Programme
  • Based on 3-stage nuclear programme: PHWRs (natural uranium); Fast Breeder Reactors; and Thorium-based reactors (long-term goal)
• Cost Advantage: Indian PHWR is globally competitive (~$2 million/MW)

Key Policy Support

• SHANTI Act, 2025: It aligns with two national goals i.e. Viksit Bharat by 2047, and Net-zero emissions by 2070.
  • Structural Reforms: Ends monopoly of the Department of Atomic Energy (DAE); allows private and foreign participationin nuclear power and permits build-own-operate (BOO)
  • Regulatory Strengthening: Grants statutory status to Atomic Energy Regulatory Board (AERB); and moves toward an independent regulatory framework.
  • Legal Changes: Repeals Atomic Energy Act, 1962; Civil Liability for Nuclear Damage Act, 2010; and introduces a revised liability regimeto attract investment.

Challenges in Scaling to 100 GW

• High Capital Cost & Financing Constraints: Nuclear plants require huge upfront investment(more than $200 billion for India);
  • Long gestation periods lead to delayed returns, and foreign reactor projects pending for years.
  • Private investors face high financial risks and uncertainty
• Renewable Limitations: Solar and wind becoming cheaper; policy focus shifting towards renewables; and nuclear seen as capital-intensive and slow.
• Long Construction Timelines: Typical nuclear projects take 8–10 years. Delays increase cost overruns, and investor risk.
• Challenges Deployment of Small Modular Reactors (SMRs): SMRs are in early stages of commercialization, facing regulatory and financing uncertainties.
• Regulatory & Institutional Bottlenecks: Complex approvals lead to project delays.
  • Lack of streamlined processes for site clearance, and environmental approvals.
• Policy Gaps: Need clarity on liability, tariffs, waste management, and fuel ownership.
  • Earlier liability laws i.e Civil Liability for Nuclear Damage Act (CLNDA), 2010 discouraged foreign participation. Even after reforms, concerns remain regarding accident liability, and insurance costs.

Strategic Pathways (Three-Front Strategy)

• Indigenisation of Large Reactors: Reduce dependence on expensive foreign designs; and learn from China’s cost reduction model.
• Development of Small Modular Reactors (SMRs): Suitable for industrial captive power and remote areas.
• Expansion of PHWR Fleet: Proven indigenous technology (220–700 MW); potential for modularisation, and faster construction.

Conclusion & Way Forward

• For SHANTI Act success, India needs to address clear separationof civilian vs strategic nuclear activities, transparent framework for tariffs insurance & liability, waste disposal, and dispute resolution.
  • There is a need to reform exclusion zone normsfor small reactors.
• It requires strong regulatory clarity, private sector confidence, technological innovation, and efficient project execution.

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